Regularized image restoration methods efficiently handle the ill-posed prob
lem of image restoration. Nevertheless, the issue of selecting the regulari
zation parameter as well as the smoothing filter still constitutes an open
research topic. A model of regularized image restoration is introduced and
analyzed in this paper. The proposed model assumes that wavelet filter bank
s replace the smoothing filter of conventional regularized restoration. Fil
ter factorizations for the optimal design of wavelet filter banks using the
generalized-cross-validation (GCV) criterion are presented, and novel expr
essions of the influence matrix, which is used to calculate the GCV error,
are derived. The error of the GCV method is expressed in terms of the modul
ation matrix of the filter bank and the modulation vector of the degradatio
n filter. The expressions are given in general form for optimal wavelet fil
ter bank design upon arbitrary sampling lattices. The numerical examples of
image restoration using the proposed method that are presented indicate si
gnificant signal-to-noise ratio improvement, Delta(SNR), compared to image
restoration methods that employ the Laplacian as the smoothing filter.